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“Incapacitated children.
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465.—(1) In this section—
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‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;
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‘qualifying child’, in relation to an individual, means a child of the individual who—
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(a) is under the age of 18 years and is permanently incapacitated by reason of mental or physical infirmity, or
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(b) if over the age of 18 years at the commencement of the year of assessment, is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated before he or she had attained the age of 21 years or had become so permanently incapacitated after attaining the age of 21 years but while he or she had been in receipt of full-time instruction at any university, college, school or other educational establishment;
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‘specified amount’, in relation to a qualifying child for a year of assessment, means £1,600.
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(2) Where an individual proves that he or she has living at any time during a year of assessment a qualifying child, the income tax to be charged on the individual, other than in accordance with section 16(2), for that year of assessment shall, in respect of each such child, be reduced by an amount which is the lesser of—
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(a) an amount equal to the appropriate percentage of the specified amount in relation to the child, or
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(b) the amount which reduces that income tax to nil.
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(3) (a) A child under the age of 18 years shall be regarded as permanently incapacitated by reason of mental or physical infirmity only if the infirmity is such that there would be a reasonable expectation that if the child were over the age of 18 years the child would be incapacitated from maintaining himself or herself.
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(b) In the case of a child referred to in paragraph (b) of the definition of ‘qualifying child’ in subsection (1), the specified amount shall be £1,600, or the amount expended by the individual in the year of assessment on the maintenance of the child, whichever is the lesser.
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(c) Any relief under this section shall be in substitution for and not in addition to any reduction of tax to which the individual might be entitled in respect of the same child under section 466.
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(4) Where an individual proves for the year of assessment—
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(a) that he or she has the custody of and maintains at his or her own expense any child who, but for the fact that child is not a child of the individual, would be a qualifying child referred to in subsection (1), and
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(b) that neither the individual nor any other individual is entitled to relief in respect of the same child under subsection (2) or under any other provision of this Part, or, if any other individual is entitled to such relief, that such other individual has relinquished his or her claim to that relief,
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the individual shall be entitled to the same relief under this section in respect of the child as if the child were a child of the individual.
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(5) (a) The reference in paragraph (b) of the definition of ‘qualifying child’ in subsection (1) to a child receiving full-time instruction at an educational establishment shall include a reference to a child undergoing training by any person (in this subsection referred to as ‘the employer’) for any trade or profession in such circumstances that the child is required to devote the whole of his or her time to the training for a period of not less than 2 years.
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(b) For the purpose of a claim in respect of a child undergoing training, the inspector may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Revenue Commissioners.
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(6) (a) Where in any year of assessment a qualifying child is entitled in his or her own right to an income exceeding £2,100 in that year, the specified amount shall be reduced by the amount of the excess up to the limit of the specified amount.
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(b) In calculating the income of the child for the purposes of paragraph (a), no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary, or other similar educational endowment.
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(7) Where any question arises as to whether any person is entitled to relief under this section in respect of a child over the age of 21 years as being a child who had become permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself after attaining that age but while in receipt of full-time instruction referred to in this section, the Revenue Commissioners may consult the Minister for Education and Science.
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(8) Where for any year of assessment 2 or more individuals are or would but for this subsection be entitled under this section to relief in respect of the same child, the following provisions shall apply:
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(a) only one specified amount under this section shall be allowed in respect of the child;
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(b) where the child is maintained by one individual only, that individual only shall be entitled to claim a reduction of tax under this section;
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(c) where the child is maintained jointly by two or more of the individuals, each of those individuals shall be entitled to claim a reduction of tax under this section by reference to that portion of the specified amount as is proportionate
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to the amount expended by him or her on the maintenance of the child;
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(d) in ascertaining for the purposes of this subsection whether an individual maintains a child and, if so, to what extent, any payment made by the individual for or towards the maintenance of the child which the individual is entitled to deduct in computing his or her total income for the purposes of the Income Tax Acts shall be deemed not to be a payment for or towards the maintenance of the child.”,
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